Houston Lake Confirms High Gold Grades at Dogpaw Lake
Lake Mining Inc. (PINKSHEETS: HLKMF) (TSX-V: HLM) (the “Company”) today announced it has received high-grade gold values in excess of 8.23 g/mt Au (0.240 oz/st Au) in due diligence samples from the first three drill holes at its Dogpaw Lake property (see Table 1). The results are in conjunction with an audit of a 19 hole 2,333 metre (7,651 feet) 1988 diamond drill program that targeted the Dogpaw No. 1 Vein on Houston Lake’s wholly owned Dogpaw Lake property. Assay results ranged from trace to a high value of 66.81 g/mt Au (1.949 oz/st Au).
The Dogpaw Lake property forms the northern portion of Houston Lake’s wholly owned and optioned 1673.6 hectare (4134.5 acre) West Cedartree Gold Project. Located near Sioux Narrows, Ontario, the West Cedartree gold project contains three high-grade gold bearing zones (the McLennan, the Angel Hill and the Dogpaw No. 1) and several high-grade vein systems.
Table 1. Initial Results for the Audited Drill Holes (1988) on the Dogpaw No. 1 Vein
Drill Hole Intercept Gold Intercept Gold Number From To (m.) (g/mt) (ft.) (oz/st) ———————————————————————– CA-88-01 51.85m 53.70m 1.85m 7.26 6.07ft. 0.212 Incl. 51.85m 52.55m 0.70m 19.15 2.30ft. 0.559 Incl. 51.85m 52.05m 0.20m 66.81 0.66ft. 1.949 Also 70.50m 71.00m 0.50m 29.13 1.64ft. 0.850 CA-88-02 52.70m 54.40m 1.70m 5.73 5.58ft. 0.167 Incl. 52.70m 54.05m 1.35m 6.97 4.43ft. 0.203 Incl. 53.40m 54.40m 1.00m 7.96 3.28ft. 0.232 Incl. 53.40m 54.05m 0.65m 11.73 2.13ft. 0.342 CA-88-03 79.00m 81.95m 2.95m 4.58 9.68ft. 0.134 Incl. 81.20m 81.95m 0.75m 9.11 2.46ft. 0.266 Also 114.50m 117.20m 2.70m 4.76 8.86ft. 0.139 Incl. 115.00m 115.90m 0.90m 8.23 2.95ft. 0.240 ———————————————————————–
Four holes were drilled as part of Houston Lake’s 2007 drill program at the West Cedartree Gold Project. Three of these bore holes were drilled below the recently stripped southern extension of the Angel Hill Gold Zone (AHGZ) to expand the coverage of the down hole IP geophysical survey program. All of these drill holes successfully encountered the altered rocks of the AHGZ and extended the AHGZ over a drill-indicated strike length of 280 metres (918 feet). All three holes intersected anomalous gold values with a best result of 0.55 metres grading 1.97 g/mt Au (1.80 feet of 0.057 oz/st Au) in drill hole WC-07-38 (see Table 2 below). The fourth drill hole targeted the McLennan Gold Zone (MGZ) and intersected 2.15 metres grading 5.25 g/mt Au (7.05 feet of 0.153 oz/st Au) including 0.50 metres grading 17.85 g/mt Au (1.64ft of 0.521 oz/st Au).
Table 2. 2007 Results for the AHGZ (Drill Holes 37-39) and MGZ (Drill Hole 40)
Drill Hole Intercept Gold Intercept Gold Number From To (m.) (g/mt) (ft.) (oz/st) ———————————————————————– WC-07-037 73.50m 74.00m 0.50m 0.13 1.64ft. 0.004 WC-07-038 37.62m 38.17m 0.55m 1.97 1.80ft. 0.057 WC-07-039 61.50m 62.00m 0.50m 0.04 1.64ft. 0.001 WC-07-040 66.85m 69.00m 2.15m 5.25 7.05ft. 0.153 Incl. 66.85m 68.00m 1.15m 9.35 3.77ft. 0.273 Incl. 66.85m 67.35m 0.50m 17.85 1.64ft. 0.521 ———————————————————————–
“We are very pleased with the progress of the West Cedartree Gold Project,” commented E. Grayme Anthony, President and CEO. “The audit of the 1988 drill program has improved upon previous results at Dogpaw. Significant gold values have been encountered in each of the four drill holes targeted at McLennan. The gold mineralizing system at Angel Hill has now been extended for 280m and has a potential strike length of at least 2.8 km.”
A 2,561 metre (8,400 feet) delineation drilling program was completed by spring 2007 and targeted the historic gold resource of the Dogpaw No. 1 Vein. The aim of the drill program was to initiate the upgrading of the historic resource to modern NI 43-101 standards by providing systematic coverage of the gold mineralization. A second component of the program is to confirm results of past drill programs where available. The Company’s exploration team has located, recovered and racked approximately 6,656 metre (21,831 feet) of drill core from two previous drill programs. Only the portion of this drill core testing the Dogpaw No. 1 Vein is currently being re-logged and audited. A preliminary examination of the historic core suggested that previous sampling of mineralized sections was incomplete and that more sampling was required to properly document the Dogpaw Vein No. 1 gold system. Consequently, the auditing program has broadened the sample coverage of the key mineralized Dogpaw Vein No. 1 intervals. A second drill program is planned for early fall to complete the drilling density needed for the resource evaluation.
Table 3. Drill Hole Locations on the Dogpaw (CA) and West Cedartree (WC) Grids
Drill Hole Dip Drill Hole Target Number Section Northing (Degrees) Azimuth Length Depth ————————————————————————- CA-88-001 1085W 1060N -60 180 degrees 106.7m 45m CA-88-002 1085W 1060N -50 180 degrees 82.3m 40m CA-88-003 1085W 1090N -56.5 179.5 degrees 134.1m 70m ————————————————————————- WC-07-037 2300N 0+92E -45 Grid West 110m 70m WC-07-038 2300N 0+59E -41 Grid West 104m 20m WC-07-039 2200N 0+79E -41 Grid West 101m 20m WC-07-040 2440N 2+85W -60 apx. Grid West 161m 50m ————————————————————————-
The Dogpaw No. 1 Vein (CA Series) is presumed to initially dip to Grid North at 70 degrees. True widths would therefore approximately be 87% of the stated core lengths of the holes with 50 degree dips, 82% of the stated core lengths of the holes with 55 degree dips and 77% of the core lengths of the drill holes with 60 degree dips. The vein system remains open to depth and along strike. The 2007 drill program successfully intersected the highly altered rock of AHGZ and MGZ to a depth of approximately 70 metre (656 feet) and both zones dip to Grid East at about 70 degrees. True widths for these drill holes (WC Series) would be approximately 94% of the stated core lengths of the drill holes with 40 degree dips, 91% of the stated core lengths of the holes with 45 degree dips and 77% of the core lengths of the drill holes with 60 degree dips. The AHGZ and MGZ remain open along strike and to depth. The AHGZ is associated with a strong IP chargeability anomaly that has been traced for over 2.8 km across West Cedartree.
Property-scale mapping and prospecting programs are ongoing and target the strike extensions of the gold zones. Channel sampling of AHGZ southern extension has been completed and 54 channel samples have been shipped for analysis. Mechanized stripping of vein and IP targets in the vicinity of Dogpaw Vein No. 1 is expected to begin in the next several weeks. A total of 238 drill samples complete the audit of the 1988 drill core testing the Dogpaw No. 1 Vein and have been shipped to TSL Labs. Results are expected in the next several weeks.
Consulting Firm Retained for Dubenski Project
The 1998 grid covering the Dubenski property has been resurrected and refurbished. This will enable Houston Lake to more effectively use geological, geochemical and geophysical surveys conducted by previous operators. Consulting geologists Watts, Griffis and McOuat of Toronto have been contracted to devise a drill program to upgrade the Shaft Zone historic resource to modern standards.
Houston Lake has awarded Cook Engineering of Thunder Bay, Ontario the contract to review the draft closure plan for the AHGZ prior to submittal of the mine permit application to the Ontario Ministry of Northern Development and Mines. The mine permit would allow the removal and off site milling of up to 50,000 tonnes of mineralized material. A 10,000 tonne bulk sample is the next recommended step in the economic appraisal of the AHGZ. Cook Engineering is well versed in permitting and has assisted the Ministry on the assessment of dozens of abandoned mine sites in NW Ontario.
“The addition of Watts Griffis and McOuat’s services will enhance the pace of exploration and development of the Dubenski property, while Cook Engineering’s expertise brings added assurance to the permitting application,” said Mr. Anthony, President and CEO.
Qualified Person
All samples were shipped to TSL Laboratories of Saskatoon, Saskatchewan and analyzed by fire assay utilizing a 50 gram charge. All samples were assayed with an AA finish and those samples assaying above 3 g/mt Au were retested utilizing a gravimetric finish. However, a nugget effect was found to be the best explanation for variations detected in some of the early sample results from the historic core. Analyses utilizing a screen metallic assay method have been adopted as standard procedure to increase sample precision for these key intersections and are reported herein. This methodology
provides a higher level of assurance by testing a large quantity of sample (up to 1000g where available) and by monitoring the size distribution of the gold. The samples will also be re-checked at a second qualified laboratory in keeping with the Company’s standard due diligence procedures.
Independent Consultant Dean R. Cutting, P. Geo., is the Qualified Person for the project under the guidelines of NI 43-101 and has reviewed this press release in its entirety.
About Houston Lake Mining Inc.
Houston Lake is an advanced exploration, vertically integrated resource company. The Company is actively exploring for gold, platinum group metals and rare metals in northwestern Ontario with a strategic focus on the West Cedartree gold project. Houston Lake’s objective in the short term is to become a gold producer by surface mining its West Cedartree gold project and developing its 100% owned and optioned properties. The Company has a total of 24,724,989 common shares issued and outstanding. For additional information on Houston Lake, visit www.houstonlakemining.com.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. This release includes certain statements that may be deemed “forward-looking statements.” All statements in this release, other than statements of historical facts, that address future production, reserve potential, exploration drilling, exploitation activities and events or developments that the Company expects are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and those actual results or developments may differ materially from those projected in the forward-looking statements. For more information on the Company, Investors should review the Company’s registered filings what are available at www.sedar.com.
Distributed by Filing Services Canada and retransmitted by Marketwire
Company Contacts: Houston Lake Mining E. Grayme Anthony P. Geo., MBA President and CEO Tel: (705) 897-7622 Fax: (705) 897-7618 Email Contact Barnes McInerney Colin Languedoc Senior Account Executive Tel: (416) 367-5000 ext. 225 Fax: (416) 367-5390 Email Contact
SOURCE: Houston Lake Mining Inc.